Jargon Buster
Purchaser
Purchaser is another name for a buyer in a property sale.
More detailed definitions of purchasers could see them referred to as a cash purchaser, purchasing requiring a mortgage, purchaser dependent on sale, or a first-time purchaser.
Purchasers who are prepared to exchange contracts unconditionally with a seller are known as ‘ready, willing, and able’ purchasers.
Referencing company
Letting agents often use referencing companies to check a tenant’s suitability for renting a property.
These checks include seeking references from employers and previous landlords, as well as a credit check.
Repossession
Repossession refers to a property that has been taken by a mortgage company due to the owner failing to pay back their mortgage.
Rescission
Rescission is where a contract is discharged, and all parties are placed back in the position they were in before the contract was signed.
Resident landlord
A resident landlord is a landlord who occupies part of their rental property as a main home, while letting the remainder of it to a tenant.
Retention
Retention refers to money held by a letting agent from the landlord to carry out any maintenance or work at their rental property.
Right to Rent
Since February 1, 2016, all landlords and letting agents in England have been required to check every tenant’s legal right to rent under the Immigration Act 2014.
Schedule of condition
As part of a property inventory, a schedule of condition should be included outlining the condition of fixtures, fittings, and free-standing items, as well as the property itself.
Section 8
Section 8 notices are issued by landlords when they wish to regain possession of their rental property.
Service charge
Service charges are payable by tenants in addition to their rent and cover a freeholder or landlord’s costs.
That could include hallway lighting, garden maintenance, insurance, agent management charges and a cash reserve for major future repairs.
Shared Ownership
Under Shared Ownership, a buyer purchases a share of a property alongside another ‘stakeholder’, usually a housing association.
The buyer takes out a mortgage for their share, while paying rent to the other ‘stakeholder’.
Sitting tenant
A tenant who has a legal right to a tenancy and security of tenure is referred to as a ‘sitting tenant’.
Properties that are purchased with sitting tenants do not entitle the buyer to vacant possession once the sale is completed.